Software Defined Data Center (SDDC) Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Solution (Software Defined Network (SDN), Software Defined Storage (SDS)), By End User (Colocation Providers, Cloud Providers, Enterprises), And By Geography - Forecasts From 2022 To 2027

Published:  Oct 2022 Report Code: KSI061610016 Pages: 114

The Global Software-defined Data Center market is expected to grow at a CAGR of 21.65%, reaching a market size of US$214.125 billion in 2027 from US$64.519 billion in 2020.

The demand for software-defined data centers is increasing due to the increasing demand for more flexibility in data center infrastructure along with an increasing demand for storage space, computing power, and complex networking. A software-defined data center (SDDC) is a data center where the entire infrastructure is virtualized and delivered as a service. The demand for software-defined data centers is also increasing as it provides a solution to support both legacy enterprise applications and new cloud computing services. The market is even being driven due to the rapid growth of colocation and cloud data centers across the world due to the increase in usage of cloud computing and advancing technologies which is driving with it the demand for software-defined data centers.

The software-defined data center market growth is also attributed to the cost reduction factor as it helps businesses to not purchase hardware, or acquire vendor-specific skills to maintain and operate it and even manage upgrades to physical machines. Increasing security threats that involve loss of critical information can be seen to be affecting the market growth of these data centers. These virtualized data centers help in running applications on the network for creating, provisioning, and deploying network resources in real-time adding or removing switches, routers, and servers as the need arise.

As data centers require more space for increased storage, networking, and computing with efficient operation and management solutions, capital costs for data center owners rise, as do operational costs, making data centers more difficult to manage. The software-defined data center market has been segmented based on solution, end-user, and geography. By solution, the market has been segmented into Software-defined Networking (SDN) and Software-defined Storage (SDS). By end-user, the market has been segmented into colocation providers, cloud providers, and enterprises.

The increasing demand for connectivity is a growing Software-defined Network (SDN)

The software-defined network has a notable market share in the software-defined data center market. The market growth in this segment is majorly attributed to the increasing need for better connectivity around the world as connecting enterprise branches, clients, and vendors through a virtualized network will provide businesses with better access to resources and wider reach. The software-defined data center market is also growing due to the exponential growth of big data in the communication and technology industries.

The software-defined storage also holds a significant market share in software-defined data centers due to the continuous increase in data generation worldwide on account of the increasing digitization of business functions and increasing overall internet penetration. Software-defined storage is providing more virtual and scalable storage space for enterprises-owned data centers, cloud data centers, and colocation data centers thus supporting their revenue generation strategies. The increase in usage of software-defined networks and storage is due to a reduction in cost, lower time to service delivery, and better flexibility, scalability, and management of multiple infrastructures at once.

Colocation providers have a significant share of the market due to access to virtual space

By the end-user, the software-defined data center market has been segmented into colocation providers, cloud providers, and enterprises. Together, colocation providers and cloud providers hold a significantly large market share. These vendors are showing a continuous increase in the demand for software-defined data centers for reducing their costs and increase their virtual space to provide their clients with more storage space and better networking solutions. The demand for software-defined data centers is also increasing on account of the generation of huge volumes of data every day, which is driving with it the demand for quicker access to big data which is provided by software-defined data centers through virtualization and cloud technology, and by using advanced data managed solutions that help in monitoring and creating backups of huge datasets. Enterprises are expected to continue holding a significant market share in the software-defined data center market over the forecast period. The increasing demand for storage space, better networking, and security are making enterprises move towards using software-defined data centers for higher efficiency and cost-effectiveness.

By geography, North America has a notable share in the market

Regionally, the software-defined data center market is classified into North America, South America, Europe, the Middle East, and Africa, and the Asia Pacific. North America, being an early adopter of new technologies, holds a significantly large market share in the software-defined data center market on account of the presence of a large number of market players and end-user companies that are drifting continuously towards artificial intelligence, big data, and augmented reality for improving technology and providing better services to their customers. This requires them to have efficient software-defined data centers that can streamline their operations along with reducing costs. The Asia Pacific software-defined data center market is expected to witness solid market growth owing to rapidly increasing industrialization and an increasing inflow of investments by major players across industries into this region. The markets in Europe and the Middle East and Africa (MEA) are anticipated to show significant expansion over the projected period on account of the rapidly increasing adoption of cloud computing and the presence of some of the major market players, which cater to diverse demands from end-users by offering them tailored solutions, in these regions.

Key Developments

  • July 2022: The innovative digital infrastructure company DartPoints recently revealed that it has partnered with the University of South Carolina on a technological project. The university's present data center will be replaced by a unique Software-Defined Data Center (SDDC) solution by DartPoints. The university's IT agility will be considerably increased by the specialized SDDC cloud solution from DartPoints. While offering the multi-tenancy of a cloud infrastructure architecture, it complies with UofSC's compliance requirements.
  • September 2022: In order to update its IT infrastructure and better serve its expanding customer base, Banco Angolano de Investimentos (BAI), the country's top full-service bank partnered with VMware. The system that BAI created enables it to make use of the software-defined data center's (SDDC) abstraction features, which include flexibility, scalability, reliability, consistency, and automation. BAI decided to use VMware NSX Data Center for its SDDC, a completely virtualized network for storage and servers, and VMware vRealize Suite to assist in the visibility and administration of its SDDC.

Product Offerings:

  • VMware Software-Defined Data Center: With the VMware approach to the SDDC, every application can run on a single platform with customizable control. The VMware SDDC architecture enables businesses to operate hybrid clouds and to make use of special features to achieve crucial results that support productivity, agility, and security. In order to create an SDDC and make the transition at their own pace, businesses using VMware technology have three options: use a converged infrastructure, they can build their own using reference architectures, or use a hyper-converged infrastructure where the full SDDC is delivered already executed on the customer's preferred hardware.
  • Fujitsu PRIMEFLEX: PRIMEFLEX is a pre-built, thoroughly tested, and integrated set of servers, network connectivity, storage, and software. The PRIMEFLEX range of integrated systems from Fujitsu includes both traditional and hyper-converged systems. It includes reference architectures that are readily adaptable to customer-specific requirements and ready-to-use factory-installed solutions. Fujitsu provides thorough installation and setup descriptions as a standard, along with its reference architectures. A seamless integration into the on-site environment is ensured by optional installation and integration services. Fujitsu offers assistance at the solution level and additional data center services, such as managed and hosting services, to ensure easier operation and maintenance.

Software Defined Data Center (SDDC) Market Scope:

 

Report Metric Details
 Market Size Value in 2020  US$64.519 billion
 Market Size Value in 2027  US$214.125 billion
 Growth Rate  CAGR of 21.65% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Solution, End-User, And Geography
 Regions Covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies Covered Hewlett Packard Enterprise Development LP, Citrix Systems Inc., Dell Inc., Oracle, Cisco Systems, Inc., NEC Corporation, Fujitsu, IBM, Arista Networks, Inc., VMware Inc., Nexenta by DDN, Inc.
 Customization Scope  Free report customization with purchase

 

Segmentation

  • By Solution
    • Software-defined Network (SDN)
    • Software-defined Storage (SDS)
  • By End-User
    • Colocation providers
    • Cloud providers
    • Enterprises
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • UAE
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the software-defined data center market size by 2027?
A1. The global software-defined data center market is projected to reach a market size of US$214.125 billion in 2027.


Q2. What is the size of the global software-defined data center market?
A2. The software-defined data center market was valued at US$64.519 billion in 2020.


Q3. What are the growth prospects for the software-defined data center market?
A3. The software-defined data center market is projected to grow at a CAGR of 21.65% during the forecast period.


Q4. What factors are anticipated to drive the software-defined data center market growth?
A4. The demand for software-defined data centers is increasing due to the increasing demand for more flexibility in data center infrastructure along with increasing demand for storage space, computing power, and complex networking.


Q5. Which region holds the maximum share of the software-defined data center market?
A5. North America holds a significant share of the software-defined data center market.


1. Introduction

1.1. Market Overview

1.2. COVID-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. Research Methodology

2.1. Research Data

2.2. Assumptions

 

3. Executive Summary

3.1. Research Highlights

 

4. Market Dynamics

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. Global Software-defined Data Center Market Analysis, By Solution

5.1. Introduction

5.2. Software-defined Network (SDN)

5.3. Software-defined Storage (SDS)

 

6. Global Software-defined Data Center Market Analysis, By End User

6.1. Introduction

6.2. Colocation providers

6.3. Cloud providers

6.4. Enterprises

 

7. Global Software-defined Data Center Market Analysis, By Geography

7.1. Introduction

7.2. North America

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. Germany

7.4.2. France

7.4.3. United Kingdom

7.4.4. Spain

7.4.5. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. Israel

7.5.3. UAE

7.5.4. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. South Korea

7.6.4. India

7.6.5. Taiwan

7.6.6. Thailand

7.6.7. Indonesia

7.6.8. Others

 

8. Competitive Environment and Analysis

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

 

9. Company Profiles

9.1. Hewlett Packard Enterprise Development LP

9.2. Citrix Systems Inc.

9.3. Dell Inc.

9.4. Oracle

9.5. Cisco Systems, Inc.

9.6. NEC Corporation

9.7. Fujitsu

9.8. IBM

9.9. Arista Networks, Inc.

9.10. VMware Inc.

9.11. Nexenta by DDN, Inc.

Hewlett Packard Enterprise Development LP

Citrix Systems Inc.

Dell Inc.

Oracle

Cisco Systems, Inc.

NEC Corporation

Fujitsu

IBM

Arista Networks, Inc.

VMware Inc.

Nexenta by DDN, Inc.

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